8. Determining Revenue and Capital Expenditures (11%)
The controller for XYZ Co. Asks you to review the Repair and Maintenance Expenses account to determine if all of the charges are appropriate. The account contains many transactions totaling $215540. All of the transactions are considered material.
Required：
You examine three of the transactions. Indicate whether each transaction is properly charged to the reqair and maintenance account and， if not， indicate why not and to which account the transaction should be charged. The three transactions as follows：
Item Date Amount Decription
1 01/03/00 $10000 Two-year service contract on office equipment
2 05/18/00 $38500 Sealing roof leaks over entire production plant
3 10/20/00 $48500 Purchase a crane for the assembly departement
